Life can be tough at the top. General Motors learned that lesson in the ’80s and ’90s, and Toyota is now going through a similar learning curve. The Japanese automaker’s recalls are at record highs, but Toyota will try to rein in quality issues through a boost in overtime pay.
In Japan, Toyota workers regularly participate in what is known as “QC Circle,” short for quality control circle. QC Circle sessions generally take place after work and are intended to get ideas from workers on how to improve Toyota’s overall quality and efficiency. However, even though the sessions take place after hours, Toyota workers have been limited to two overtime hours per month for the sessions. But after a new court ruling, Toyota will begin fully compensating its workers for the sessions, beginning next month.
The court ruling stemmed from the death of a 30-year old Toyota worker. The middle-manager was in charge of checking car body defects and would routinely work more than 100 overtime hours per month. After several months, he died due to overwork, according to The Detroit News. In fact, death from overwork is so common in Japan, they have a saying for it — “karoshi.” Karoshi is so common in the Japanese culture that there is a law that allows families to collect money from the employer if overwork is found as the cause of death.
While the new compensation plan may not reduce the number of hours a Toyota employee has to work, the Japanese automaker is hoping that it will encourage its workers to participate in more after-hours events.
